Occupational Accident Insurance is an alternate form of insurance to fund employer’s obligation to the employee.
Texas and Oklahoma are two states which allow an employer to opt out of the traditional Workers Compensation policy. However, opting out of the Workers Compensation program does not provide the employer with indemnity if there is a work related accident. The employer still has the same legal obligations to provide for employees who are injured on the job. Except, if they do not carry Workers Compensation and Employers Liability Insurance, the costs incurred when an employee is injured will be borne out of pocket for the employer, including medical expenses, rehabilitation, and legal bills.
An Occupational Accident policy gives the employer a means to fund his obligations to his employees who suffer injury or death while on the job. The policy allows the employer to make choices regarding the limit of liability per accident, deductibles, length of disability benefits, and amount of death benefits.
Occupational Accident policies can also be purchased with an Employer’s Liability policy which can provide protection to the employer in the event of a law suit brought about by an injured employee or the survivor of the employee, if the employer is thought to be grossly negligent in the cause of the injury.
The biggest difference between an Occupational Accident Policy and a Workers Compensation policy is that the latter automatically provides all the benefits mandated by the state and offers little or no choice in the matter.